- White Rock Minerals (WRM) has announced a $7.35 million equity raising to speed-up exploration at its Last Chance Gold Prospect
- The Last Chance Gold Prospect is part of the company’s Red Mountain Project in Alaska
- This money will be raised through a two phase placement and a share purchase plan
- Under the placement approximately 1.95 billion shares will be issued to institutional and sophisticated investors
- Share will be priced at $0.003 each to raise $5.85 million
- The remaining $1.5 million will be raised through a share purchase plan
- However, Directors have the right to increase this amount if more applications are received
- White Rock has dropped 20 per cent on the market and shares are trading for 0.4 cents each
White Rock Minerals (WRM) has announced a $7.35 million equity raising to speed-up exploration at its Last Chance Gold Prospect.
This money will be raised through a two phase placement and a share purchase plan.
“The level of interest shown in this capital raising has been tremendous. It will allow White Rock to immediately recommence on-ground works in mid-June to explore and then drill the robust 15 square kilometre Last Chance gold anomaly located in the Tintina Gold belt of Central Alaska,” CEO and Managing Director Matt Gill said.
“We have attracted some serious interest in the Last Chance exploration story and this funding will allow us to get on the ground mid-June, conduct mapping, sampling, geochemistry and be drilling by early August,” he added.
Under the placement approximately 1.95 billion shares will be issued to institutional and sophisticated investors at a price of $0.003 per share to raise $5.85 million.
This price represents a 25 per cent discount to the 15-day volume weighted average price.
The placement will be undertaken in two phases with phase one issuing 470,407,384 shares to raise $1.41 million.
These shares are expected to settle on or around June 4.
The remaining 1,479,592,616 shares will be issued as part of phase two to raise $4.44 million.
However, this phase is subject to shareholder approval at a general meeting which is expected to be held on July 9.
Shares are then expected to be issued on or around July 17.
Share Purchase Plan
For the share purchase plan eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares at a price of $0.003 per share.
The share purchase plan has been capped at $1.5 million however, Directors have the right to increase this amount if applications exceed this amount.
White Rock has also announced a proposed consolidation of its issued capital through the conversion of every 100 existing shares into one share.
As there is a significant number of shares on issue, the company believes that a share consolidation will provide the best platform for continued growth.
It could also result in a share price level that is more attractive to a broader range of investors.
The money raised from the placement and share purchase plan will be used for White Rock’s exploration program at the Red Mountain Project in Alaska, particularly the Last Chance Gold Prospect.
White Rock has dropped 20 per cent on the market and shares are trading for 0.4 cents each at 3:23 pm AEST.